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Booz Allen Hamilton keeps winning, even when the government shuts down

TBR’s initial response to Booz Allen Hamilton’s (BAH’s) 1Q19
earnings published on Tuesday, and we expect another strong quarter from BAH to
close out its FY19. BAH boasts a soundly differentiated market position and
multilayered alignment of its technology and advisory portfolio with the
primary objectives of its federal customers. Consulting-led offerings are
increasingly interwoven with an innovative technical capacity designed to
enable federal clients to meet operational challenges and security threats
ever-increasing in sophistication and volume. BAH even emerged from the recent
35-day temporary government shutdown with minimal fiscal damage, further
illustrating the resiliency of its solutions model and fueling its confidence
about 2020. We further expect the company will issue strong guidance for its
upcoming fiscal 2020, with revenue growth in the high single digits and margin
performance sustained at current levels.

Read more of Senior Analyst John Caucis’ assessment of federal IT services vendors through the quarter and the upcoming
quarterly benchmark.

Additional
assessments publishing this week from our analyst teams

Tuesday

In our 1Q19 Hewlett Packard Enterprise CloudInitial Response, we discuss how the company’s margin improvements resulted from a more software-defined portfolio and improved operating efficiency as the HPE Next initiative enters its final year. — Cassandra Mooshian, Senior Analyst

Wednesday

Cost-cutting initiatives including headcount reduction and deeper integration of digital sales and customer service channels enabled Sprint to reduce $1.2 billion in gross operating costs in FY18, but this was largely offset by reinvestments in network and other operational initiatives. Sprint’s financial position will remain challenged long term due to its high debt load and struggle to generate positive net income and free cash flow, highlighting why the T-Mobile merger is in the best interest of the company. — Steve Vachon, Analyst

Thursday

Now with its third CEO in two years, Rackspace rebrands Fanatical Support to
Fanatical Experience as it commits to providing ‘unbiased expertise’ and a more
total support system. — Cassandra Mooshian,
Senior Analyst

Friday

We expect VMware to report another quarter of strong, above-average growth in comparison to its software peers. Ongoing portfolio investments, partnerships and tuck-in acquisitions position the company for continued customer attraction and retention. — Cassandra Mooshian, Senior Analyst

Despite enhanced efficiencies in traditional IT operations, T-Systems could not offset pressures on profitability from reorganization and adoption of IFRS 16. Expanding its portfolio in growth segments will enable T-Systems to benefit from a more flexible business model to adapt to and address client demands. Kelly Lesiczka, Analyst

And if you missed the May 22 webinar, Bringing the best: Talent and technology in management consulting, check
out the replay here.

Strong investments by webscales and China-based telcos will carry the telecom infrastructure services (TIS) market through the COVID-19 crisis relatively intact, with a shallow decline of relatively short duration expected in the overall market followed by a robust, sustained recovery as CSPs in other key countries accelerate their infrastructure initiatives to align with the new […]

Strong investments by webscales and China-based telcos will carry the telecom infrastructure services (TIS) market through the COVID-19 crisis relatively intact, with a shallow decline of relatively short duration expected in the overall market followed by a robust, sustained recovery as CSPs in other key countries accelerate their infrastructure initiatives to align with the new […]